William Eichler 21 October 2026

Rural areas £19bn short of growth potential, report warns

Rural areas £19bn short of growth potential, report warns image
© Steve Allen / Shutterstock.com.

England's shire counties and rural areas could have had economies £19bn larger had they matched national growth, according to a new report.

The County Councils Network (CCN) and Grant Thornton UK found that between 2013 and 2023, county and rural areas grew 14.7% in real terms, 2.5 percentage points below the national average. Had they matched the 19.2% growth of mayoral urban areas, output would have been £34bn higher.

The report blames weaker infrastructure and fewer high-paid jobs. 5G coverage from all four main operators averages just 24% in county areas, compared with 95% in London. County residents also face public transport journeys to major job centres that are 70% longer than those in cities.

Ahead of next week's Budget, the CCN warned the Government is ‘missing a trick’, with almost every offer in its Rewiring the State programme available only to mayors. Eighteen county areas, covering 12m residents, have no devolution deal.

The CCN is calling for the devolution map to be completed by the end of 2028, and for counties without mayors to receive equivalent powers and funding.

Cllr Mick Barton, Devolution and Economic Growth Spokesperson for the County Councils Network said: ‘I am one of a select few county leaders with a devolution deal in place. We’ve worked collaboratively with the East Midlands Combined Authority, delivering its vision on the ground and helping to drive inward investment into the region.

‘But too many of my colleagues across the country do not have the same opportunities and we are at risk of creating a country of "urban haves" and "rural have nots." So far, the Prime Minister has appeared narrowly focused on strengthening the suite of powers mayors have further, whilst neglecting England’s counties.’

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